Michelle ThompsonA team of five officials from the U.S. Treasury Department is currently in Beijing for a series of meetings with Chinese counterparts to discuss economic matters. This visit by senior Treasury officials precedes the planned visit of Treasury Secretary Janet Yellen to China later in 2024.
The delegation from the U.S. Treasury, led by Jay Shambaugh, the Under Secretary for International Affairs, aims to have frank discussions on various economic issues, including China’s trade tactics. These discussions will focus on China’s use of non-market economic practices and industrial overcapacity, which have been contentious subjects in Washington. The U.S. delegation also intends to address economic developments, global economic risks, and fiscal and central bank policies.
Treasury Secretary Janet Yellen has previously criticized China for what she considers “unfair” practices, such as creating barriers for foreign companies to enter the Chinese market and taking “coercive actions” against American firms.
This visit marks the first time the economic working group has met in Beijing since its launch in September, following Secretary Yellen’s trip to China.
While the meetings come at a time of financial market turbulence in China due to concerns about its economic slowdown, there is no direct indication that this visit is in response to these renewed concerns. The economic working group had always been expected to meet regularly.
Treasury Secretary Yellen has made improving U.S.-China relations a central part of her agenda, with plans to enhance communication, promote transparency, increase regulatory collaboration, and address issues such as terrorism financing and the flow of fentanyl between the two countries.
Federal Reserve Chairman Jerome Powell also acknowledged challenges facing China’s economy, particularly in the real estate market, but emphasized that the impact on the United States should not be significant as long as it doesn’t lead to major disruptions in the U.S. economy or financial system.
